Physical verification of fixed Assets

Posted @ January 31, 2016, 6:08 am under (Fixed Assets Verification)

PHYSICAL VERIFICATION OF FIXED ASSETS - OFFICE ASSETS

Periodical Physical verification of Fixed Assets is requiered to carry out in order to ensure that the books of accounts continue to reflect the correct value of fixed asset and assets that do not exist are timely written off from the records.

Scope of Physical verification of office assets consists of verification of computers, printers, peripherals, desktops, furniture and fixture, office equipments and intangible assets. Third party assets and leasehold improvements are generally kept outside the scope of physical verification of assets.

Following challenge are faced by the verifying team during physical verification of Assets:

Identification of assets, especially old assets

Incorrect Capitalization

Assets in transit

Assets with users

Discarded assets

Verification approach under different situation:

Assets acquired during the year or improvements done during the year should be verified on the basis of purchase orders, invoices, material receipt notes, and title deeds.

Land and buildings ownership should be verified by examining the title deeds.

Also examine

The authorisation procedure for procurement of assets

Sales process such as calling for quotations etc.

Adjustments to the account of the asset

Accounting for the proceeds of the sale and

Adjustment for the gain or loss on the sale.

Accounting of foreign exchange gain or loss.

We help clients reconcile the output of the verification exercise with existing records. A process that links the asset values in the existing records and the assets tagged at each location is carried out.

Our Experience with various companies has enabled us to develop the process with which the activities can be done in a very optimum time for the required result. We assist many corporate in managing and reconciling their fixed asset database. We undertake complete physical verification and affix bar coded tags on each type of assets available.

Mail us at info@amitarun.com to find out more about our services and how we can help to efficiently manage the fixed assets.